The party demands union territory status for Ladakh. A consortium of political parties formed in 2002 decided that a regional party shall be formed under a single flag and carry on with the struggle for the Union territory status for Ladakh. Things changed when few of the nominated candidates shifted sides and joined national and Kashmiri parties. Since then the political scene in Ladakh has been uncertain.

While LUTF demands the Union territory status of just the Leh district, the general consensus among the people in Kargil and Ladakh is that these districts should be included in the demand for the Union Territory status. The Party lost its image after it indulged into narrowminded politics and led to the suspension of educational movements like the Operation New Hope, implemented jointly by Students' Educational and Cultural Movement of Ladakh (SECMOL).